LIV SIR Analyzes Quarter 1 Micro Markets, Signs of Continued Growth in Colorado Real Estatelivxmin
On April 15, 2016, LIV Sotheby’s International Realty released a Quarter 1 (January through March) Micro Market Report indicating that the Colorado real estate market demonstrated continued growth in 2016. The Micro Market Report (MMR) compares 2016 Quarter 1 statistics, to that of 2015, for single family homes and attached dwellings.
“In the first quarter of 2016, Colorado is enjoying a continued strong real estate market,” said LIV Sotheby’s International Realty president, Scott Webber. “The economic rules of supply and demand play an important role in understanding our current real estate market. Simply stated, the lower supply of inventory combined with a high buyer demand to purchase is creating a market where values will continue to increase.”
LIV Sotheby’s International Realty compiles Micro Market Reports for the residential areas the brokerage services, which includes 12 office locations in Denver metro, including Castle Pines, Cherry Creek, Denver Tech Center, Downtown Denver, Evergreen and Boulder and the resort communities of Breckenridge, Vail, and Beaver Creek.
In Denver metro, the average price of single family homes and condos combined rose 9.9%, resulting in an average price of $379,138. In the city of Denver, the average price of single family homes and condos rose 11%, resulting in an average price of $411,229.
Inventory has decreased slightly, and the number of new listings coming on the market is down 0.7% in Denver metro and up 2% in the City of Denver. Meanwhile, the number of listings sold have increased only 2.9% and 2.1% respectively.
Across the board, days on market rose 2%, (now 41 days on average), and the sales price to list price ratio held at 98.8%, a 0.2% decrease over 2015 throughout the Denver metro area. This statistic is evidence of continued competitive, and steady conditions in the marketplace.
Highlights from the 2016 Q1 report indicates that Denver city’s average price reached $411,229 – up 11.0%, Downtown’s average price is $523,498 – up 16.3%, Park Hill’s average price is $635,864 – up 15.2%, Castle Pines Village average price is $988,873 – up 14.7%, and Cherry Creek North’s average price is $1,238,349 – up 39.0%.
The Boulder Area MMR indicates that the average sales price of single family and attached dwellings combined rose 11.2%, resulting in an average price of $547,126.
New listings are down, and at only 1,176 properties listed in the first quarter, inventory is at its lowest point in several years. The lack of inventory has had a negative effect on the number of sales, which is down 17.2% to 739 in the first quarter of 2016. Other stats reflect a strong seller’s market: less time on the market (now averaging 43 days), and a higher sell price/list price ratio (now averaging just over 100%). Many properties sell after receiving multiple bids, and buyers are left with little room to negotiate. Some would-be sellers are postponing the decision to list, fearing that they won’t find a suitable replacement property.
The hottest neighborhoods in terms of dollars per square foot are located in the core of Boulder – the Historic District, Downtown, and University Hill. These are also the areas with the most pronounced disparity of available listings compared to the demand. At the core of this imbalance is the local economy, which provides about 100,000 jobs in Boulder proper– a number roughly equal to the entire population of the city! Currently, about 60,000 of those people commute daily into Boulder. As prices continue to rise rapidly, both affordability and overall mobility of the marketplace suffers.
LIV Sotheby’s International Realty compiles monthly, quarterly and year-end reports to help consumers make better real estate decisions, whether purchasing or selling a home. Reports can be accessed as www.coloradomarketreports.com. For more information, contact Brittanny Havard, public relations manager, LIV Sotheby’s International Realty at 303.486.3738. To service all of your real estate needs visit www.livsothebysrealty.com